BBC Trust

The BBC Trust is the governing body of the British Broadcasting Corporation (BBC). It is operationally independent of BBC management and external bodies, and its stated aim is to make decisions in the best interests of licence fee payers.

In summary, the main roles of the Trust are in setting the overall strategic direction of the BBC, including its priorities, and in exercising a general oversight of the work of the Executive Board. The Trust will perform these roles in the public interest, particularly the interest of licence fee payers. — BBC Royal Charter (2006)[1]

The Royal Charter establishes that the Trust should have twelve trustees, including a Chairman, a Vice-Chairman and a member for each of the Home Nations of the United Kingdom.[1] Appointments to the BBC Trust are made by Queen in Council, on the recommendation of UK government ministers.

The Trust was originally to be chaired by Michael Grade, the then Chairman of the Board of Governors. However, in November 2006 before the Trust formally took over from the Governors as the governing body of the Corporation, Grade left the BBC to become Executive Chairman of ITV. Chitra Bharucha, then Vice-Chairman, became the Acting Chairman.[2]

Sir Michael Lyons was subsequently appointed the first permanent Chairman of the BBC Trust, taking up the position from 1 May 2007.[3] In September 2010 Sir Michael wrote to the Secretary of State, Jeremy Hunt, stating that he did not wish to be considered for a second term as Chairman.[4] He stood down from the post in April 2011.

Following a recruitment process led by the Government, Chris Patten, Baron Patten of Barnes was appointed to the role and began a four-year term on 1 May 2011. Patten resigned in May 2014 following heart surgery. He was replaced by the Vice Chairman, Diane Coyle, in an acting capacity until a new Chairman was selected.[5] On 31 August 2014 it was announced that Rona Fairhead would become the new Chairman of the trust.[6]

The Chairman is expected to spend 3–4 days a week on Trust business, and the Vice-Chairman about 2.5 days. Other Trustees are expected to spend about 2 days a week. Since 2010 BBC Trust members have been taking an 8.3% reduction in fees (equivalent to one month's pay).

In October 2010 the Government announced that the fee for the Chairman of the BBC Trust would be reduced from £143,000 to £110,000.[8]

In October 2007, the Trust approved the BBC's strategic direction for the next six years, demanding a high quality and more distinctive BBC.

The Trust has approved several new services, including the iPlayer, HDTV and the Gaelic Digital Service, BBC Alba. The Trust denied a proposal to launch a new local video service in late 2008 due to concerns about competition with commercial producers, especially newspapers moving online. The Trust has also recently demanded that the BBC makes more programmes outside of London.

In May 2008 the Trust published its review of the BBC's website (bbc.co.uk), criticising the service for financial mismanagement, including a £36 million overspend. The departure of Ashley Highfield, Director of the BBC's technology department has been linked to the findings of the review. In June 2008, the Trust was highly critical of the BBC's network news reporting of issues in Scotland, Northern Ireland and Wales.

The Trust was heavily criticised in the popular press for its review of the amount the BBC pays for "top talent" and failing to answer whether stars like Jonathan Ross and Graham Norton were value for money. Ross was reported to earn £6 million a year.[9][10]

In April 2009, the Editorial Standards Committee (ESC) of the BBC Trust published a report into three complaints brought against two news items involving Middle East editor Jeremy Bowen.[11] The report received widespread coverage in the UK and in Israel.[12][13][14][15][16]

The complaints included 24 allegations of breaching BBC guidelines on accuracy or impartiality of which three were fully or partially upheld.[13] The Independent's Middle East correspondent Robert Fisk was particularly critical of the ESC report, saying that the BBC Trust is "now a mouthpiece for the Israeli lobby".[15] An editorial in The Independent said that the report demonstrated "a terrible absence of good judgement".[16] Michael Lyons' response to the editorial, also published in The Independent, said that it is important to take complaints seriously and to be scrupulously careful about standards of accuracy and impartiality so that the BBC's reputation for fairness and impartiality is maintained.[17]

The BBC Trust had come under severe pressure by the 2010-2015 coalition government. Both the Conservative Party and the Liberal Democrats were highly critical of the Trust model, stating that it has "failed".[18] Both parties favoured some kind of external regulation of the BBC.

Despite some early rhetoric about abolishing the Trust, the former Culture Secretary, Jeremy Hunt, has made clear that he would only act within the current Royal Charter, so major changes are unlikely until after the Charter expires in 2016. He has instead expressed his support for changing the name of the Trust and installing a new non-executive chairman on the BBC's Executive Board.[19][20]

The previous Culture Secretary, Maria Miller had not made clear a position on the BBC Trust's existence although it is expected that there will be some form of management and governance re-structure.

The Trust is supported by a team of 70 staff, known as the Trust Unit. These staff are independent from the BBC Executive and include specialists in audience research, performance analysis, and finance. The Trust Unit is headed by its Director, Nicholas Kroll.

In 2007/08, the BBC Trust cost £11.909 million to run; in 2008/09, £10.517 million; and in 2009/10, £10.502 million, excluding Ofcom fees.[21]